Couple of income questions before submitting BR application

Missdurandos · 13 October 2019 at 9:34PM

Hiya,

I’ve completed my bankruptcy application and ready to submit but have a few questions if anyone can help please? As a brief background my main reason for bankruptcy is a failed bridal business and I have debts of around £44k. I live with a partner and 2 children and am on maternity allowance (self employed) at the moment.

My partner pays for all our household expenses including rent and bills so my outgoings are pretty low. I do pay for food shopping, clothes for kids etc. My partner earns a decent amount so can give me money if I run out. Will this go against me? Will they think my partner should be paying for my old debts etc? It was my 30th earlier this year and he paid for me to go away. He sent the money to my bank account (just over £2k) then I paid for it. I can obviously explain this but again will they go against me for having been on holiday even though I didn’t actually pay for it?

On the income section I had to put my profit from last tax return (apr18-apr19) and then I put in my maternity allowance and child benefit which is what I currently receive. The application is showing that my income is both figures added together when, in reality, the self employed income was last years and I only live on MA and CB now. Will they take this into account when looking at an IPA? Because it’s showing I have loads of excess income when I actually don’t. I have around £100 excess MA/CB in reality and that’s with a very frugal expense section. Will they still set up an IPA?

With my maternity allowance and child benefit, am I able to ask both to freeze my payments until I am allowed to open a new basic bank account? What will happen to that money if they continue to pay it to my existing current account which I presume will be closed? They are paid weekly and fortnightly so I’m worried there will be a crossover.

Thanks in advance for any help, I am so nervous 😔.

Missdurandos · 13 October 2019 at 10:32PM

Also another couple of things I’ve thought of - my partner recently bought a car (£4.5k) which I use. He’s the registered keeper, payment made from his account, receipt in his name etc. Will they try and take it off him because I use it?

Also I saw on another post that someone had to have face to face interview because they were self employed - is that standard for self employed people?

mwarby · 14 October 2019 at 10:54AM

Don't be too frugal on your expenses, try to build a little contingency in,while you can't be too lavish, you don't need to live on only cheapest own brand food.

You'll be able to explain the income and benefits during your interview

Your partners income and vehicles don't really come in to it, so long as your paying only your fair share of bills. The only issue with car might be the IR deciding you don't need a car and so not allowing for running costs to come from your income

mwarby · 14 October 2019 at 10:57AM

Re your bank account, if you have an I overdraft you'll likely need to get a new account, if not you might be able to keep as is, or it might be downgraded to a basic account

The safest thing is probably to open a new account with a bank you don't owe money too, and move any income over ASAP

debt_doctor · 14 October 2019 at 4:31PM

Hi,

In self employment, last years figures can be a reasonable indicator of the current trading year if activity remains the same.
It seems that YOU only currently have benefit income (MA + CB) and as such an IPA cannot be sought from you as an IPA can only come from the BANKRUPTS spare income.
If you start earning again whilst undischarged then an IPA might be sought from you.
In your current circumstances you should say NO to any proposed IPA.

DD

Couple of income questions before submitting BR application

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